The role of Trust The Integral Leader Public Service Winter School 5 February, 2014 Fons Trompenaars

What is Trust? trust (n.) c.1200, from O.N. traust "help, confidence," from P.Gmc. *traust- (cf. O.Fris. trast, Du. troost "comfort, consolation," O.H.G. trost "trust, fidelity," Ger. Trost "comfort, consolation," Goth. trausti "agreement, alliance"). Related to O.E. treowian "to believe, trust," and treowe "faithful, trusty" (see true). (1.)[Dictionary Definition]: trust: the faith or conviction in the loyalty, strength, veracity, etc., of a person, process or thing; reliance on the truth of a statement etc., without examination. (Oxford Dictionary). (2.)[Dictionary Definition]: faith: confidence, belief, reliance, especially without evidence or proof; spiritual apprehension of divine truth or intangible realities. (Oxford Dictionary). trust (n.)true

Your clients and partners

Einstein: "You can't solve a problem at the same level it was created"! Whilst all organizations share the same types of problems during these difficult times, their approach to them is usually culturally biased and often set in their past. New innovative solutions are required that are grounded in sharp strategy, understand the organization's values, reconcile the competing demands of the perspectives of all stakeholders including shareholders, employees and customers, plus solid branding and impeccable design. Innovation Leadership Sustainability Globalization Doing More with Less: Main levers to pull

Dilemmas of Trust On the one handOn the other hand RuleRelationship Walk, practicingTalk, preaching RapportReport SpeedPatience CourageCaution ErrorCorrecting TrustControl

Approaching Dilemmas: Navigating Strategic Tensions To Trust is to combine Values that are not easily joined….. Therefore scarce... Therefore profitable…. And that is what servant leaders do

Servant Leadership (Greenleaf) “Servant Leadership is enabling others to perform better”

Main dilemmas (1) 8 On the one hand …On the other hand … We see collaboration as important for the ongoing success of the service provision We want to ensure that we are properly recognized for our contributions We want to have shared facilities and “one stop shops” with other public services We want to retain our separate identity and role We need to standardize our systems to ensure the long-term sustainability of the organization Many of our systems vary throughout each project and are well received and understood by all We need high levels of professional specialist expertise to deliver specialist care We need to develop new ways of delivering care across professional boundaries by multi-skilled workers

Main dilemmas (2) 9 On the one hand …On the other hand … People working close to the patients are experts of the issues at that level. We want to encourage individuals to participate their ideas and experience to this change process from the bottom up Our organization is large and requires strong, top-down leadership to manage this change process NHS faces financial pressures and cost saving schemes being developed Developing patient-centered care that is safe, timely, efficient and effective Development and change is required to meet future needs and requirements If it works don´t fix it We want to focus on what we do well as an organization to ensure we deliver excellent services to our customers We need to work in partnership with other organizations to deliver results more efficiently

This approach leads to concrete and measurable actions… Impact Time Recognize Increase Awareness Recognize Increase Awareness Respect Appreciate Cultural Differences Respect Appreciate Cultural Differences Reconcile Resolve Cultural Differences Reconcile Resolve Cultural Differences Realize and Root Implement Reconciling Actions Realize and Root Implement Reconciling Actions

“Servant leaders have the propensity and competence to help organizations and its teams reconcile dilemmas for better sustainable business performance” Core Proposition

Some hard evidence

Source: 21 Leaders for the 21 st Century p429 Correlation (Spearman’s coefficient of rank correlation) Correlation between reconciliation and 360 o feedback by peers and subordinates 0.71 Correlation between reconciliation and bottom line business performance in profit centre/budget stream 0.69 Some hard evidence Our research reveals that propensity to reconcile dilemmas correlates with bottom line business performance

Some soft evidence

1. To develop our people versus to become more cost conscious 5. Global or standardized) products versus local tastes, particular markets 8. Operational Agility versus strategic clarity 6. Customer is always “right” versus anticipate customers needs 7. Equal opportunities versus positive discrimination 2. Reward our people for their mastery versus Reward our shareholders for their faith in us 9. Leverage intellectual capital versus innovative projects 4. Reputation in wider community versus serve our customers wants 10. Satisfy our customers at all costs versus shareholder value Corporate Effectiveness & Efficiency Satisfaction of the Client Employee Development & Learning Shareholder Returns & Financial Performance Contributions to Society 3. Keep short-term cash flow versus Invest in long- term sustainability

Please define culture What is Culture?

Language Food Meeting style Architecture Dress Behaviour Rhythm & Pace Expression of emotion Work ethic Physical contact Literature A model of culture

Explicit Culture A model of culture

Explicit Culture A model of culture Basic Assumptions Implicit Culture

Is a dynamic process of solving human problems/dilemmas in the areas of… - Human Relationships - Time - Nature About Culture

Rules versus Exceptions Individual versus Team Control versus Passion Specific versus Diffuse Lord versus Servant Sequential versus Synchronic Inner versus Outer Orientation

01/ The Car Accident What happens to your friend?

01/ What right does your friend have? A.My friend has a definite right as a friend to expect me to testify to the lower figure. B.He has some right as a friend to expect me to testify to the lower figure. C.He has no right as a friend to expect me to testify to the lower figure.

01/ Dilemma: The top 2 of your corporate values are: 1.Integrity 2.We respect the cultures of others INTEGRITY Please discuss in the context of these values what your answer would be…

Consistency Systems, standards & rules Uniform procedures Demanding of clarity Letter of the law Flexibility Pragmatic Make exceptions “It depends” At ease with ambiguity Spirit of the law 01/ Universalism vs Particularism

Friend has no/some right and would not help 01/ Universalism

Friend has no/some right and would not help 01/ Universalism

Global or standardized products versus local tastes, particular markets Corporate Effectiveness & Efficiency Satisfaction of the Client Employee Development & Learning Shareholder Returns & Financial Performance Contributions to Society

Global Standards (Critical Mass) Cultural Diversity (Differing solutions) Globalism and Localism 01/ Dilemma

Globalization vs. Localism Global centralized Decentralized Multinational Global Corporation Multi-Local Corporation

Globalization vs. Localism Global centralized Decentralized Multinational Transcultural Corporation International Corporation

Universalism versus Particularism - dilemmas 32 On the one hand …On the other hand … Innovation We need to ensure that staff are aware of, and work to, policies and procedures laid down for the delivery of effective services We should allow staff to work in an innovative way to get things done in response to customer need We understand the importance of consistent organizational/team culture on innovation We have many differing cultures within our teams and organizations which create different approaches Sustainability We need to standardize our systems to ensure the long-term sustainability of the organization Many of our systems vary throughout each project and are well received and understood by all Collaboration We want to have shared facilities and “one stop shops” with other public services We want to retain our separate identity and role We need to streamline and homogenize our processes and procedures to deliver maximum benefits from the collaboration and how we deliver services to a greater number of people We need to ensure that the service is sufficiently bespoke to deal with the problems faced by those people requiring our services

01/ Main Challenges

b) Another said: ‘If the individual is continuously taking care of his or her fellows then the quality of life for us all will improve, even if it obstructs individual freedom and individual development.’ a) One said: ‘It is obvious that if one has as much freedom as possible and the maximum opportunity to develop oneself, the quality of one’s life would improve as a result.’ 02/ Individualism versus Communitarianism

Percentage opting for individual freedom 02/ Individualism

Percentage opting for individual freedom 02/ Individualism

02/ Dilemma Reconciliation The Individual and the Team Case Study: Individual Performance versus Team Spirit

02/ The Individual and the Team Stimulate Team Co-operation Reward Individual Performance

Team Motivation Individual Motivation 02/ Dilemma Reconciliation (1,10) Me, Myself and I withholding Information Team Mediocrity (10,1) (5,5) Go for the Small team AND Reward Individuals for Team Work Reward Teams for Individual Creativity (10,10)

Individualism versus Communitarianism - Dilemmas On the one hand …On the other hand … Collaboration I want to be unique and work aloneI want to develop with other colleagues and work collaboratively We see collaboration as important for the ongoing success of the service provision We want to ensure that we are properly recognized for our contributions

02/ Main Challenges

4. Reputation in wider community versus serve our customers wants Corporate Effectiveness & Efficiency Satisfaction of the Client Employee Developmen t & Learning Shareholder Returns & Financial Performance Contributions to Society

Rules versus Exceptions Individual versus Team Control versus Passion Specific versus Diffuse Lord versus Servant Sequential versus Synchronic Inner versus Outer Orientation

04/ Specific versus Diffuse

PUBLIC PRIVATE Specific versus Diffuse

04/ Specific versus Diffuse Specific Relationship

PUBLIC PRIVATE 04/ Specific versus Diffuse

No Relationshi p 04/ Specific versus Diffuse

PRIVATE Diffuse Relationship 04/ Specific versus Diffuse

Danger Zone PRIVATE PUBLIC

04/ Specificity The colleague argues: You don’t have to paint the house if you don’t feel like it. He is your boss in the company. Outside the company, he has little authority The subordinate argues: Despite the fact that I don’t feel like it, I will paint the house anyway. He is my boss and you cannot ignore it outside your work either. A boss asking to paint his house

% Would not paint the house 04/ Specificity

% Would not paint the house 04/ Specificity

04/ Communication in high and low context Diffuse A larger context (from general to specific) Specific A smaller context (from specific to general)

To develop our people versus to become more cost conscious Corporate Effectiveness & Efficiency Satisfaction of the Client Employee Development & Learning Shareholder Returns & Financial Performance Contributions to Society

Balanced Score Card Dilemma… From the Balanced to the Integrated Score Card

Specific Financial Performance Diffuse Developmen t of People From the Balanced to the Integrated Score Card

Specific financial performance Interests in future innovating and learning Cost cutting yourself (1,10) Subsidised seminar (10,1) Integrated growth: Train for Cost Cutting (10,10) From the Balanced to the Integrated Score Card

Positive discrimination versus equal opportunities Corporate Effectiveness & Efficiency Satisfaction of the Client Employee Developmen t & Learning Shareholder Returns & Financial Performance Contributions to Society

Report Rapport (Deborah Tannen)

Specific versus Diffuse - Dilemmas On the one hand …On the other hand … Innovation We need high levels of professional specialist expertise to deliver specialist care We need to develop new ways of delivering care across professional boundaries by multi-skilled workers Innovation is encouragedStatus quo is preferred Sustainability Funding for staff and services is decreasingWorkload and expectation is ever increasing We need to make the organisation financially stable in order to function We need to deliver best possible care for our patients which may require spending money Collaboration I am constantly being asked to engage in command and control management as it is believed that this will deliver rapid results To be truly effective we need to acknowledge that health care is a complex adaptive process and that working in uncertainty is creative We need to be accountable as an individual health organization to meet the needs of our population We want to work effectively in collaboration with other organizations to meet the needs of our population

Rules versus Exceptions Individual versus Team Control versus Passion Specific versus Diffuse Lord versus Servant Sequential versus Synchronic Inner versus Outer Orientation

07/ Internal versus External Control A. What happens to me is my own doing. B. Sometimes I feel that I do not have enough control over the direction my life is taking.

What happens to me is my own doing 07/ Internal versus External Control

What happens to me is my own doing 07/ Internal versus External Control

Shareholder value versus Satisfy our customers at all costs Corporate Effectiveness & Efficiency Satisfaction of the Client Employee Developmen t & Learning Shareholder Returns & Financial Performance Contributions to Society

Balanced Score Card Dilemma… From the Balanced to the Integrated Score Card

Inner Directed Improvem ents in Business Processes Outer directed increase in customer satisfaction From the Balanced to the Integrated Score Card

Inner directed improvements Outer directed increase in customer satisfaction Lean but mean (1,10) Customer’ s captive (10,1) Integrated growth: Pushing through the Pull (10,10) From the Balanced to the Integrated Score Card

07/ Main Challenges 1.Mass-Customization 2. Co-Opetition 3. It is cool to be emotional 4. Moments of Truth 5. Servant Leader 6. Just in time Synchronizing Sequences 7. Pushing through the Pull

Internal versus External Orientation - Dilemmas On the one hand …On the other hand … Innovation We want to lead and innovate, try new things and be brave We are a government organization and our stakeholders/customers might expect us to be cautious We need to ensure that the most effective services are provided. This may require services to change and adapt as more evidence/treatments becomes available There is a need to minimize risk, and keeping services/treatment as they are means that staff are familiar with the service, and this helps to avoid unnecessary risk Sustainability Development and change is required to meet future needs and requirements If it works don´t fix it We need to continue to develop and change to meet population needs We need to develop sustainable services Collaboration Cultural and historical bureaucracy provide security and encourage confidentiality Technology has moved at pace and we should take advantage of it We want to focus on what we do well as an organization to ensure we deliver excellent services to our customers We need to work in partnership with other organizations to deliver results more efficiently

Rules versus Exceptions Individual versus Team Control versus Passion Specific versus Diffuse Lord versus Servant Sequential versus Synchronic Inner versus Outer Orientation

05/ Lord versus Servant STATUS ? What You Do Who You Are

05/ Lord versus Servant ‘The most important thing in life is to act as really suits you, even if you don’t get things done’

% Percentage not agreeing with acting as really suits you 05/ Lord versus Servant

% Percentage not agreeing with acting as really suits you 05/ Lord versus Servant

Achievement versus Ascription - Dilemmas On the one hand …On the other hand … Innovation We need to attract new talent and skills into the department for short - medium term in order to provide innovative solutions to issues we are facing We have a moral and corporate responsibility to give those displaced internally the opportunity to fill these posts first Collaboration People working close to the patients are experts of the issues at that level. We want to encourage individuals to participate their ideas and experience to this change process from the bottom up Our organization is large and requires strong, top-down leadership to manage this change process

However… the starting point might be different in different cultures so: Make better rules out of exceptions Let creative people work in teams Craft Strategies Report within Rapport Connect Inner with Outer Worlds And lead by serving Servant Leaders… Look for the exception that proves the rule Create teams that support individual creativity Strategically Craft Rapport within Report Adapt internally to outside forces And serve by leading

Questions?

Key Takeaways – short list Instead of focusing on the conflict between different values, look for theopportunity to gain more through genuine collaboration than you might have thought possible (than by following your original approach) Be aware of the power of your “default” – e.g. the approach you habitually adopt when things get hard, or when you are feeling too comfortable Broaden your repertoire of communication practices and business customs Create informal opportunities to interact In short - acknowledge complexity: e.g. the way we talk about west and east is at best a shorthand for something much richer

Dilemma theory: resolving strategic issues DILEMMA (from the Greek meaning) TWO-PROPOSITIONS IN (APPARENT) CONFLICT

CentralizationDecentralization

Centralizing (Knowledge) Decentralizing (Activity)

Culture Space Centralizing Decentralizing

Better Centralized Knowledge of ever more Decentralized Activities Centralizing Knowledge Decentralizing Activity

Universalis m Particularism Vicious and Virtuous Circles

Main dilemmas (1) 89 On the one hand …On the other hand … We see collaboration as important for the ongoing success of the service provision We want to ensure that we are properly recognized for our contributions We want to have shared facilities and “one stop shops” with other public services We want to retain our separate identity and role We need to standardize our systems to ensure the long-term sustainability of the organization Many of our systems vary throughout each project and are well received and understood by all We need high levels of professional specialist expertise to deliver specialist care We need to develop new ways of delivering care across professional boundaries by multi-skilled workers

Main dilemmas (2) 90 On the one hand …On the other hand … People working close to the patients are experts of the issues at that level. We want to encourage individuals to participate their ideas and experience to this change process from the bottom up Our organization is large and requires strong, top-down leadership to manage this change process NHS faces financial pressures and cost saving schemes being developed Developing patient-centered care that is safe, timely, efficient and effective Development and change is required to meet future needs and requirements If it works don´t fix it We want to focus on what we do well as an organization to ensure we deliver excellent services to our customers We need to work in partnership with other organizations to deliver results more efficiently

Dynamic process of solving dilemmas in six steps: 1.Identify dilemma 2.Chart dilemma 3.Stretch dilemma 4.Define epithets 5.Reconcile dilemma 6.Define action points Reconciling cultural differences

1. Describe the Dilemma: on the one hand: on the other hand: 2.Y-axis label: 2.X-axis label: 4. 10,1 3. List Positives for Y-axis: + 5, ,10 List Negatives for Y-axis: - 3. List Positives for X-axis: + List Negatives for X-axis: - 6. Action plan Actions: - Obstacles: - Monitoring: - Reconciliation Worksheet 1.Identify the dilemma 2.Chart the dilemma a.Be specific by making the dilemma defined under 1 more concrete b.Label the axes reflecting the opposing positions (positive or neutral) c.Plot the positions of the actors 3. Stretch the dilemma Describe the positives and negatives of each side of the dilemma 4. Make epithets Put epithets (sweet and sour) in each of the boxes 5. Reconcile the dilemma Ask how Value X can support Value Y and vice versa 6. Develop action plan 10,10

Dilemma reconciliation Steps in reconciling dilemmas: Choose the dilemma you want to work on and sign up Chart the dilemma: make it specific to your table Stretch the dilemma: List the positives and negatives Define epithets Reconcile the dilemma: –How can I get more of Value X through Value Y, and –How can I get more of Value Y through Value X? Develop action plan

Main dilemmas (1) On the one hand …On the other hand … We see collaboration as important for the ongoing success of the service provision We want to ensure that we are properly recognized for our contributions We want to have shared facilities and “one stop shops” with other public services We want to retain our separate identity and role We need to standardize our systems to ensure the long-term sustainability of the organization Many of our systems vary throughout each project and are well received and understood by all We need high levels of professional specialist expertise to deliver specialist care We need to develop new ways of delivering care across professional boundaries by multi-skilled workers

Main dilemmas (2) On the one hand …On the other hand … People working close to the patients are experts of the issues at that level. We want to encourage individuals to participate their ideas and experience to this change process from the bottom up Our organization is large and requires strong, top-down leadership to manage this change process NHS faces financial pressures and cost saving schemes being developed Developing patient-centered care that is safe, timely, efficient and effective Development and change is required to meet future needs and requirements If it works don´t fix it We want to focus on what we do well as an organization to ensure we deliver excellent services to our customers We need to work in partnership with other organizations to deliver results more efficiently

What Kind Of Leadership? Corporate Effectiveness & Efficiency Satisfaction of the Client Employee Developmen t & Learning Shareholder Returns & Financial Performance Contributions to Society

05/ Achievement versus Ascription Attributed status by seniority or role Performance Status Lost democratic leadership (1,10)

05/ Achievement versus Ascription Attributed status by seniority or role Performance Status Follow the Leader (10,1)

05/ Achievement versus Ascription Attributed status by seniority or role Performance Status The Servant Leader (10,10)

05/ Lord versus Servant

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